First home owners No genuine savings requirement
- Thread starter paisneil
- Start date
Hiya
Quick addition here.
The 5 % in the CBA/Homeside Case can be non gen savings, but you still need to fund the 5 % shortfall, but rates are at normal rates. The CBA product doesnt allow for the 5 % to be borrowed from non-secured (personal) type loans.
The STG type product is at a higher rate but will lend you marginally more in terms of LVR.
ta
rolf
Quick addition here.
The 5 % in the CBA/Homeside Case can be non gen savings, but you still need to fund the 5 % shortfall, but rates are at normal rates. The CBA product doesnt allow for the 5 % to be borrowed from non-secured (personal) type loans.
The STG type product is at a higher rate but will lend you marginally more in terms of LVR.
ta
rolf
Rolf do you know (perhaps for clarification)
1/ is it just for first home buyers or everyone in general
2/ are the other banks following suit - so far only CBA, St. G and Homepath have been mentioned above.
Surely this would capitalise a big advantage for the big banks if there are only a few of the main banks doing it... does it depend on the mortgage insurance company who is willing to run with it I wonder?
Thanks
1/ is it just for first home buyers or everyone in general
2/ are the other banks following suit - so far only CBA, St. G and Homepath have been mentioned above.
Surely this would capitalise a big advantage for the big banks if there are only a few of the main banks doing it... does it depend on the mortgage insurance company who is willing to run with it I wonder?
Thanks
Hi Luke
STG has always had that "100 %" lend for the last 18 mths or so.
CBA/Homepath is a recent thing.
Many of the other lenders are shortening the savings period from 6 to 3 mths.
Its not just for FHOG people, applies to all purchases I think.
Being wong but never in doubt, I will confirm
ta
rolf
STG has always had that "100 %" lend for the last 18 mths or so.
CBA/Homepath is a recent thing.
Many of the other lenders are shortening the savings period from 6 to 3 mths.
Its not just for FHOG people, applies to all purchases I think.
Being wong but never in doubt, I will confirm
ta
rolf
Thanks Rolf. I am meeting with a guy on Wed whos pretty clued in to the mortgage industry as well for lunch so I"ll tap his knowledge and let you know outcome if I dont hear before.
I appreciate that being write may be better than being wong as well (depending on who you are talking to)...
I appreciate that being write may be better than being wong as well (depending on who you are talking to)...
Hiya
My feedback is that it applies to all purchases, not just FHOG, experience will tell better though.
Hod ya go Luke ?
ta
rolf
My feedback is that it applies to all purchases, not just FHOG, experience will tell better though.
Hod ya go Luke ?
ta
rolf
Rolf (et al)
I spoke to my guy today who advised me that CBA is the only one (so far) that allows a 95% lend with 5% unconfirmed. NAB do a 90/10 Split. ANZ are working towards it but the word is that they still have a bit of time to go until the mortgage insurer approves this. Besides that noone does it so CBA has the market.
He also mentioned something about a 'postcode listing' and they removed it so theres no 'postcode restrictions' whatever that means for mortgage insurers (in Qld anyway).
I spoke to my guy today who advised me that CBA is the only one (so far) that allows a 95% lend with 5% unconfirmed. NAB do a 90/10 Split. ANZ are working towards it but the word is that they still have a bit of time to go until the mortgage insurer approves this. Besides that noone does it so CBA has the market.
He also mentioned something about a 'postcode listing' and they removed it so theres no 'postcode restrictions' whatever that means for mortgage insurers (in Qld anyway).
5% unconfirmed savings
As Rolf mentioned earlier don't ignore St George.
The St.George No Deposit Home Loan is designed to meet the market need for residential loans for customers with little equity but good cash flow, providing a loan of up to 100% of a property's purchase price or valuation (whichever is the lesser).
The Flexible Deposit Option with the No Deposit Home Loan provides customers with standard interest rates, subject to Lender's Mortgage Insurance coverage and underwriting conditions
As Rolf mentioned earlier don't ignore St George.
The St.George No Deposit Home Loan is designed to meet the market need for residential loans for customers with little equity but good cash flow, providing a loan of up to 100% of a property's purchase price or valuation (whichever is the lesser).
The Flexible Deposit Option with the No Deposit Home Loan provides customers with standard interest rates, subject to Lender's Mortgage Insurance coverage and underwriting conditions
Hi POB
Id say its a major revolution for common sense.
GE made that move, now pMI will have to follow
ta
rolf
Id say its a major revolution for common sense.
GE made that move, now pMI will have to follow
ta
rolf
Hiya Nat
The 100 % products around to date have all had genuine savings, high rate or high LMI premium rate issues.
Whats happening here is that GE has cut out the need for genuine savings entirely, while the LMI rate card is still at a good rate and there isnt a silly loading on the lenders interest rates that are using it.
ta
rolf
The 100 % products around to date have all had genuine savings, high rate or high LMI premium rate issues.
Whats happening here is that GE has cut out the need for genuine savings entirely, while the LMI rate card is still at a good rate and there isnt a silly loading on the lenders interest rates that are using it.
ta
rolf
paisneil said:
G'Day Sunshine
There has been a quiet revolution in lending as the market has contracted, and lenders are becoming much more competitive with each other to the benefit of the borrower.
However, the shift in some lender's criteria is not just about the first home buyer, but about all borrowers.
This shift is of particular benefit to low income earners or people who find it very difficult to pay rent, run a household and to save even a few thousands of dollars for a deposit.
I have a young couple at the moment who are paying a low rent but will probably have to move soon as the house will be demolished. They thought they'd never be able to buy a home of their own, and have concentrated their efforts on buying furniture and paying off their (secondhand) cars.
However, with the help of the $7,000 First Home Owner's Grant plus the Victorian First Home Buyer's Bonus of $5,000 (until December, 2005) and with a bit of help from their families (not much if they can save a bit, too), they will be able to look for a modest first home to buy before the end of the year.
For example, if they buy a property for $190,000 (Outer Eastern Melbourne) with a 100% loan they will need to contribute about $3,750, with a 95% loan they would need about $7,500. If they buy at $250,000 with a 100% loan they will need about $9,300 or with a 95% loan about $14,500.
They can certainly afford the repayments and there is a broad selection of choice between units and full houses in this price range, and luckily for them one of the specialist lenders released their 95% 'no genuine savings' product only last week at the discounted rate of 6.76%.
In these days of deregulation of markets, we can forget that it is all about the competitive nature of markets. Loans are a product the same as cauliflowers and cornflakes. The money may not have a 'best before' date but if it is not out there earning more money then it is costing the lender dearly.
Build a better mousetrap? Give the people (customer) what they want, and what home buyers and investors are asking for is greater flexibility in lending, to use less of their own money to set the deal up, to have access to discounted or 'step down' interest rates, and for fees and charges to be deferred for a reasonable period of time.
This is one happy young couple who can see that they, too, can actually afford to buy their own home, and if they can make a decision before Christmas then they will be smiling all the way to the bank as they unwrap their $12,000 Christmas present!
Ho Ho Ho
Kristine
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